Tweets, memes, and digital art are now selling for millions...
NFTs, the latest crypto craze, explained in 5 minutes.
NFTs, the latest crypto craze, explained in 5 minutes.
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TechTranscript
00:00Everyone wants to get in on this NFT craze.
00:03It's something that we should all be paying very close attention to.
00:06People collect art that doesn't exist physically?
00:17What an NFT is, in its simplest term, is a digital collectible
00:23whose authenticity can be verified in a public way
00:28via what's something called the blockchain.
00:31It could be a sound recording. It could be a picture.
00:34It could be a 3D graphic.
00:37Basically, whatever you can think of as being art
00:40could be an NFT.
00:42It's just a digitized version of said art.
00:53Fungibility could be thought of as something that could be equally exchanged.
00:57If I have two $5 bills and I have a $10 bill,
01:01then I can exchange those.
01:03It's the same thing. Same thing with Bitcoin.
01:06Non-fungibility would be like if I tried to trade
01:09the Mona Lisa for the Statue of David.
01:14Non-fungible tokens can just mean something that's inherently unique,
01:20something that isn't pegged to a specific monetary value.
01:36A common criticism to NFTs is,
01:38well, why don't I just take a screenshot of a picture
01:42and then I'll have the same thing?
01:44With NFTs and memes and tweets that have been converted to NFTs,
01:50I think to me that it's a good deal about people wanting a piece of history.
01:56For instance, if you have Jack Dorsey's first tweet
02:00and that got converted to an NFT,
02:02you now have a piece of history that no one else has.
02:06Sure, they could scroll for probably 14 days and find the original tweet,
02:11but having that or having the flying rainbow cat or anything like that,
02:18it's a piece of nostalgia.
02:21A lot of that is bragging rights,
02:23just the same reason you'd buy any other art piece,
02:26just to have it and show it to your friends
02:28and make you feel good every time you look at it.
02:34For now, I can own the NFT on my digital wallet,
02:38and I can show you that on my phone,
02:40but what about if I want to have it in my home?
02:42There are more solutions coming out
02:44where I can have a frame on my wall,
02:47and that blows up the NFT so that I can see it in large format.
02:51I've seen a walkthrough of a digital art gallery.
02:58Every wall has different pieces on it,
03:01so that's probably where we're headed in the future.
03:09If you're a local artist, you can now turn those into NFTs
03:12and potentially multiply your reach by 100 or 1,000 fold.
03:18Same thing if you create memes,
03:20same thing if you do anything that's trolly or internet style.
03:24NFTs derive value from many different sources,
03:28but if you are a famous person,
03:30if you are a public figure,
03:32or if there was a historical moment that happened,
03:34that will certainly lend to the said value of the NFT.
03:39Of course, anyone can do it,
03:41but the more eyes you have on that project,
03:43the higher likelihood you have of selling that.
03:58I do think there probably is going to be more merging
04:01between the digital art world and the traditional art world.
04:05It's just like everything else has done.
04:07With Beeple, I have tremendous respect for that guy and his team
04:11because he took pictures every day without fail for 5,000 days,
04:17so that guy deserves $69 million.
04:28NFT could apply to anything, really.
04:30If you think about it, that could apply to the deed to your house.
04:32That could be real estate, you know what I mean?
04:36Or your apartment complex or whatever you want
04:39because of the fact that it's on the blockchain
04:42and it can be verified by anyone and it's unique
04:45and it can have its authenticity verified.
04:48You could apply that to many different sectors,
04:50including real estate or any kind of valuables outside of art.
04:55The speculation part is when people will only buy an NFT
05:00for the purpose of trying to sell it for more.
05:03That is what screams bubble to me.
05:07However, I will say that NFTs, especially utility-driven NFTs,
05:13will absolutely be here for the long haul.
05:16And just like the rest of the crypto markets,
05:20they will probably be ebbs and flows, ups and downs,
05:23but the trajectory is steadily going up.